Mark Carney Leads Push To Form Major Trade Bloc As Trump Threatens Canada With Tariffs: Report

Last Updated:February 17, 2026, 03:04 IST

Canada is leading talks to link the European Union and CPTPP, aiming for a new trading bloc of 1.5 billion people.

Canada is spearheading discussions to bring the European Union and a major Indo-Pacific trade bloc closer together, with talks under way to explore a potential economic partnership spanning dozens of countries, according to Politico, which first reported the development.

Prime Minister Mark Carney has called for closer cooperation among middle powers, and Ottawa is now “championing efforts to build a bridge between the Trans-Pacific Partnership and the European Union, which would create a new trading bloc of 1.5 billion people," he told global leaders in Davos, according to the report.

The discussions come amid renewed uncertainty in global trade after US President Donald Trump threatened fresh tariffs on allies, prompting several middle powers to explore closer economic cooperation.

The European Union and the 12-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have begun discussions to explore proposals aimed at linking supply chains and expanding trade cooperation. The talks could eventually bring nearly 40 countries into closer economic alignment, with a focus on rules of origin — the criteria used to determine the economic nationality of goods.

Such a framework would allow manufacturers across the two blocs to trade components and finished products more seamlessly through a process known as cumulation, which enables lower-tariff movement of goods within integrated supply chains.

Earlier this month, Carney sent his representative to the EU, John Hannaford, to Singapore to gather views from regional leaders on the proposal.

“The work is definitely coming along," a Canadian government official said, adding that discussions with partners had been “very fruitful," according to Politico.

The idea gained traction last November when the EU and CPTPP agreed to explore ways to strengthen economic cooperation and supply chain resilience. Japanese officials have indicated there is value in expanding trade links between the blocs, though concrete outcomes may take time, the report said. Diplomats from other CPTPP members have also expressed interest in pursuing the discussions.

Within the EU, some officials are described as “super keen" on advancing a cumulation deal, though an EU official said the proposal is not currently a top priority. Immediate efforts are focused on achieving practical outcomes to deepen supply-chain cooperation and diversify trade, they said.

Business groups in Europe, including the German Chamber of Commerce and the British Chambers of Commerce, have voiced support for closer integration, noting that existing free trade agreements between the EU and several CPTPP members could make such arrangements easier to implement.

News world Mark Carney Leads Push To Form Major Trade Bloc As Trump Threatens Canada With Tariffs: Report

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